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DISCOM Dues Decline, but Uttar Pradesh Still Leads in Outstanding Payments

The total outstanding dues of power distribution companies (DISCOMs) to power generators dropped to Rs615.95 billion in December 2024, according to the Ministry of Power’s PRAAPTI portal. Despite the reduction, Uttar Pradesh remained the highest debtor for the fifth consecutive month, owing Rs73.88 billion and Maharashtra at Rs60.03 billion.

The overdue dues, excluding fresh monthly dues of rs353.36 billion. If payments exceed the trigger date, overdue amounts will rise by Rs988.2 million due to late payment surcharges. DISCOMs can pay in up to 48 installments.

To improve financial discipline, the Grid Controller of India updated the implementation process for the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022, covering intra-state and inter-state generators, payment security, power scheduling, and non-payment resolutions. Additionally, in October 2024, the Ministry of Power introduced the Electricity Distribution (Accounts and Additional Disclosure) Rules to enhance financial transparency, enforce receivable provisions, and regulate trade receivable days.

The twelfth annual integrated ratings of DISCOMs, released in March, showed financial and operational shifts in the sector. Out of 55 DISCOMs evaluated for the 2023 financial year, 17 improved their ratings, 14 saw downgrades, and 14 achieved an A+ rating, up from 10 last year. Gujarat led with six top-rated DISCOMs, followed by Odisha (three) and Haryana (two), with eight of the highest-rated firms being private entities.